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Deposit Takers Act 2023

Crisis management and resolution - Covered bonds - Cover pool monitor

419: Cover pool monitor

You could also call this:

"A cover pool monitor is an independent checker who makes sure a company is doing the right thing with its cover pool."

Illustration for Deposit Takers Act 2023

A cover pool monitor must be independent of the company that issued the cover pool. You can think of a cover pool monitor as someone who checks that the company is doing the right thing. The monitor must also be one of the following: a licensed auditor under the Auditor Regulation Act 2011, a registered audit firm under the Auditor Regulation Act 2011, or someone the Bank has approved.

The cover pool monitor's contract must say they have to do the things listed in section 420. When we say the monitor must be independent, we mean they cannot be connected to the company that issued the cover pool or anyone related to that company. If someone is already an auditor, being an auditor does not affect whether they are independent or not.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS475575.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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"Breaking the law if you don't follow a correction notice"

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420: Cover pool monitor must perform certain services under contract, or

"A cover pool monitor's job is to check and report on certain things to make sure everything is done correctly."

Part 7Crisis management and resolution
Covered bonds: Cover pool monitor

419Cover pool monitor

  1. A cover pool monitor must—

  2. be independent of the issuer; and
    1. be 1 or more of the following:
      1. a licensed auditor under the Auditor Regulation Act 2011:
        1. a registered audit firm under the Auditor Regulation Act 2011, if the issuer ensures that appropriate arrangements are in place to ensure that the functions of the cover pool monitor are performed by, or under the supervision of, a licensed auditor:
          1. a member of any other class of persons or firms that has been approved by the Bank; and
          2. be required, under its contract of appointment, to do the things specified in section 420.

            1. For the purposes of this section, independent means independent of both the issuer and any associated person of the issuer.

            2. However, a person’s appointment as auditor does not affect their independence.

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